Communispace is a company that offers targeted consumer insight through a network of communities to aid a variety of companies in product development, marketing techniques, and general market insight. This case study analyzed the company’s business profile and whether it would be wise for them to broaden their operations into word of mouth campaigns, where instead of soliciting information from online community members they would provide products to a target online community in the hopes they would talk about the benefits of the products with friends, co-workers, family, etc.
The client in this case, that was requesting Communispace facilitate their word of mouth campaign, is a large consumer packaged goods company that could represent a major repeat source of revenue in the future. Though there is some concern amoung executives that doing this could adversely affect their core business of soliciting honest feedback from online communities, I feel like this concern is unwarranted. This seems to be a logical step for Communispace and would in no way effect their current business model, as long as this was clearly segmented from their current business model and new community members recruited specifically for the purpose of a word of mouth campaign. I might also develop separate branding for this new product as not to create confusion over Communispaces' core business of soliciting information from targeted online communities.
When considering a new product/service a company should analyze whether: A) There is a clear demand for the product/service, B) Whether this product/service is something current customers demand (providing a cross-selling opportunity, C) Whether the company has expertise in this area, D) What kind of initial investment would be required and what's the overall risk of failure?
In this case they have a large client requesting this service, it is a logical transition from their existing business model, it is something existing clients could benefit from, and requires little additional investment. To me this would be a no-brainer. After helping companies develop a new product I would solicit them to start a word of mouth campaign with a separate community, adding potential for additional revenue. Communispace could become not only a passive marketing research company, but a proactive viral campaign outlet.
Good article with a complete overview of issues involved: 9/10
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